Under the double pressure from the lowered export rebate rate by the government and the anti-dumping measures by EU, Chinese textile, apparel and footwear industry enterprises have raised their prices according to their prior made strategies, during the current China's 100th Commodities Export Fair.
Jiang Lianduo, general manager of Qingdao Doublestar Footwear company, said, "We could not even survive if we don't raise our price!" The export of leather shoes to EU was hit hardly by price soaring in materials as well as the anti-dumping duty imposed by EU.
For the current fair, buyers from Europe would be probably 30-40 percent less than previous sessions.
He said, the prices of natural rubber, textile products, crude oil rose significantly, besides, many factories faced labour shortage with labour cost increasing, they could not start operation.
The production cost of the overall industry already raised 15-20 percent from that during Spring Fair. He said, the company's average export price increased over 10 percent.
In this fair, the average price for a pair of printed canvas shoes reached to US $3.5-3.6 per pair comparing to less than US $3 per pair in Spring Fair.
Wang Yongli, Vice President, Guangdong Silk Group, said, the price lift was a test, because a hasty action may turn customers away.
He said, though the industrial profit margin was very low, only 2-3 percent, they could not transfer all the gain in production cost to customers.
Yongli predicted that the lift in textile and apparel prices would not surpass 5 percent with mostly narrowed within 2-3 percent.
According to a recent investigation released by Global Resources, who investigated 741 inland firms in supplying chains within 6 months, 70 percent of the inland manufacturers in the survey plan to raise their export prices in the coming 12 months, but the price growth would be limited under 10 percent.
Fibre2fashion, News Desk - China
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